AMD Stock Forecast 2022 is revised to $168

AMD Stock Forecast 2022: AMD Forecast for the next 12 months is $168

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AMD Stock Forecast: Latest price

Share Volume 61.6 K
Forward P/E 1 Year 22.75

AMD Stock Forecast Performance chart

AMD Stock Forecast: CrowdWisdom360-Insights

  • AMD has announced that they will be acquiring Pensando- a distributed cloud computing company and a developer of new edge services. Pensando has partnered with Microsoft Azure, Goldman Sachs and IBM Cloud in the past.
  • AMD’s CEO Lisa Su gave insights on their upcoming Ryzen 7000 series processors which are based on Zen core technology at Computex 2022; a computer trade show. At the trade show AMD executives highlighted their technology growth and promise of efficiency from their new products.
  • AMD and Qualcomm Technologies Inc have announced a collaboration where they will be utilizing the Qualcomm’s Fast Connect connectivity system for AMD Ryzen platforms.
  • The short-term recommendation is to Sell this stock.

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AMD Stock Prediction 2022

AMD Stock Forecast: Background (AMD)

AMD is an American multinational semiconductor company headquartered in California and focuses on computer processors and related technology. Advanced Micro Devices was founded by Jerry Sanders along with seven of his colleagues on May 1, 1969. The company’s product includes x86 microprocessors, accelerated processing units, discrete graphics processing units, chipsets for personal computers, and gaming datacentres.

Partnership with Meta- A giant leap for future

  • Advanced Micro Devices showed ultra-momentum on Monday and shares held to the all-day gains after analysts were upbeat about company’s new data centre deal with Facebook
  • During an online event, AMD announced that Meta (Facebook) is adopting its EPYC central processing units or CPUs. AMD already supplies processors to cloud computing providers such as Amazon, Microsoft and Alphabet
  • Facebook win was a surprise because it earlier used Intel processors. AMD also launched Instinct MI200 series accelerators optimised for high performance computing and artificial intelligence workload.
  • Meta said in its third quarter press release that it plans to invest as much as $10 billion in its augmented reality and virtual reality products and services. Serving as their prime technology suppliers is very lucrative for AMD and it speaks volume of its preparedness for next 10 years to take on its competitors Intel and Nvidia.

AMD Stock Forecast: AMD vs Nvidia- A tough call

  • AMD and Nvidia are both been outstanding performers for the year. While Nvidia has given more than 100 percent return, AMD has only given 80 percent return. Both stocks are trading at almost all-time highs, touching new highs day after day. So which one among the two is better for investors?
  • AMD is growing at faster pace than Nvidia. AMD expects 65 percent revenue growth in 2021, up from its prior guidance of 60 percent, whereas analysts expects Nvidia to end fiscal year with 54 percent growth, lower than that of AMD.
  • AMD has diverse catalysts. While Nvidia gets most of its revenue by selling graphic cards, AMD on the other hand gives investors chance to take advantage of more opportunities as it sells CPUs for computers aside from selling graphic cards. AMD horizon is more and it is expected to increase in near future with launch of new products.
  • Valuation is tilted in favour of AMD because AMD is trading at 40 times trailing earnings whereas Nvidia is trading at 95 times trailing earnings. Also AMD’s price to sales ratio is 10.7 which is much lower than Nvidia multiple of 30.7.

Choosing AMD over Nvidia is everybody’s guess right now as AMD is expected to outpace Nvidia in near future, has a wide range of products, and is available at a cheaper price.

A look at AMD financials after Q2 results-

  • AMD recently announced its second quarter results on August 2nd, 2022 and it once again announced stellar performance with revenue jumping 70 percent Year on Year to $6.6 billion during the quarter.
  • Adjusted gross margin was up by 640 basis points YoY to 54 percent and non GAAP net income rose to $1.7 Billion.
  • The company’s earnings came at $1.05 per share up significantly from $0.63 per share in the previous year period.

AMD Stock Forecast: Final Take

AMD has constantly focused on research and delivering on its promises. It has been in the market since 1969, partnered with Intel, and is all set to acquire Xilinx. The company is in the right sphere when looked at from the financials and fundamental prism. Also, the Facebook announcement has only helped to increase the morale of investors.

Also, the company has been trading above 10 days, 20 days, 50 days moving average simple and exponential and still is trading at 40x price to earnings is like cheery on the cake. AMD has not placed a wrong foot in the past six years after its President Lisu Su took over its reign and is expected to outperform its competitors in near future.

It will be interesting to watch how its new partnership with Meta pans out and that will decide whether AMD will keep on touching new highs or will it see a major correction?  

Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

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